Debt |
9 Months Ended |
|---|---|
Sep. 27, 2026 | |
| Debt Disclosure [Abstract] | |
| Debt | I. DEBT Revolving Credit Facility On August 7, 2026, Teradyne entered into a credit agreement (the “2026 Credit Agreement”) providing for a five-year, $1.0 billion senior secured revolving credit facility (the “2026 Credit Facility”) that matures in . The 2026 Credit Agreement replaced Teradyne’s prior six-year, $750.0 million revolving credit facility entered into in May 2020 (the “2020 Credit Facility” and, together with the 2026 Credit Facility, the “Credit Facilities”), which, prior to Teradyne’s voluntary early termination, was set to expire in December 2026. The 2026 Credit Facility may be used for working capital and general corporate purposes. The 2026 Credit Agreement contains certain customary affirmative and negative covenants, including covenants restricting Teradyne’s and certain of its subsidiaries' ability to incur liens, dispose of assets, make certain investments and restricted payments, and engage in certain mergers, consolidations and other fundamental changes. Borrowings under the credit facility bear interest at variable rates based on SOFR, plus an applicable margin, and may be repaid, in part or in full, at any time without penalty. Teradyne is required to maintain two financial ratios, including a maximum consolidated leverage ratio of 3.50 to 1.00 and a minimum interest coverage ratio of 2.50 to 1.00, subject to certain exceptions and exemptions. The credit facility is guaranteed by certain of Teradyne’s wholly-owned domestic subsidiaries and secured by assets of Teradyne and such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. Teradyne is required to pay commitment fees on the unused portion of the commitments under the credit facility. The applicable margin on borrowings, the commitment fees, and the guarantees and security interests described above are each subject to adjustment or release when Teradyne maintains specified investment grade ratings from at least two of S&P, Moody’s and Fitch, with the guarantees and security interests subject to reinstatement if Teradyne is subsequently downgraded below such rating thresholds. As of September 27, 2026, Teradyne had no outstanding borrowings under the 2026 Credit Facility. As of December 31, 2025, Teradyne had outstanding borrowings of $200 million under the 2020 Credit Facility. The weighted-average interest rate on the outstanding borrowings as of December 31, 2025 was 4.86%. During the nine months ended September 27, 2026, Teradyne paid $4.8 million in interest related to its debt from its Credit Facilities. As of September 27, 2026, Teradyne was in compliance with all covenants under its credit agreements. |